Operations Chapter 2
Which of the following is the best example of competing on low-cost leadership? A) A firm produces its product with less raw material waste than its competitors do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products are. D) A firm's research and development department generates many ideas for new products. E) A firm advertises more than its competitors do.
A) A firm produces its product with less raw material waste than its competitors do.
The term maquiladora is most synonymous with: A) free trade zones in Mexico. B) Chinese forced labor camps. C) home-based or cottage industry. D) areas that do not meet U.S. standards for workplace safety and pollution. E) tax breaks provided by some South American countries to other South American countries.
A) free trade zones in Mexico.
A product will always be in the same stage of its product life cycle regardless of the country.
Answer: FALSE
Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value.
Answer: FALSE
NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia.
Answer: FALSE
Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product differentiation/innovation.
Answer: TRUE
Which of the following is true of maquiladoras? A) They discourage foreign businesses from outsourcing. B) They assess tariffs only on the value-added work done. C) They originated in China. D) None of the above E) All of the above
B) They assess tariffs only on the value-added work done.
Which of the following statements best characterizes delivery reliability? A) a company that always delivers on the same day of the week B) a company that always delivers at the promised time C) a company that delivers more frequently than its competitors D) a company that delivers faster than its competitors E) a company that has a computerized delivery scheduling system
B) a company that always delivers at the promised time
Which of the following is an example of competing on quick response? A) A firm produces its product with less raw material waste than its competitors do. B) A firm offers more reliable products than its competitors do. C) A firm's products are introduced into the market faster than its competitors' products. D) A firm utilizes its capacity more effectively than its competitors do. E) A firm advertises more than its competitors do.
C) A firm's products are introduced into the market faster than its competitors' products.
Which of the following did the authors NOT suggest as a reason for globalizing operations? A) reduce costs B) improve the supply chain C) pursue stockholder approval ratings D) understand markets E) attract and retain global talent
C) pursue stockholder approval ratings
Which of the following does NOT represent a valid reason for globalizing operations? A) reduce costs B) improve the supply chain C) reduce responsiveness D) attract and retain global talent E) understand markets
C) reduce responsiveness
Which of the following is an example of competing on the basis of differentiation? A) A firm manufactures its product with less raw material waste than its competitors do. B) A firm's products are introduced into the market faster than its competitors' products are. C) A firm's distribution network routinely delivers its product on time. D) A firm offers more reliable products than its competitors do. E) A firm advertises more than its competitors do.
D) A firm offers more reliable products than its competitors do.
Response-based competitive advantage can be: A) flexible response. B) reliable response. C) quick response. D) all of the above. E) none of the above.
D) all of the above.
Which of the following is LEAST likely to be a low-cost leadership competitive advantage? A) low overhead B) effective capacity use C) inventory management D) broad product line E) mass production
D) broad product line
Which of the following best describes experience differentiation? A) immerses consumers in the delivery of a service B) uses people's five senses to enhance the service C) complements physical elements with visual and sound elements D) consumers may become active participants in the product or service E) All of the above are elements of experience differentiation.
E) All of the above are elements of experience differentiation.
Which of the following statements regarding the Dreamliner 787 is true? A) Boeing has found partners in over a dozen countries. B) The new aircraft incorporates a wide range of aerospace technologies. C) The new aircraft uses engines from not one, but two manufacturers. D) Boeing will add only 20 to 30 percent of the aircraft's value. E) All of the above are true.
E) All of the above are true.
18) Which of the following represents a reason for globalizing operations? A) to improve the supply chain B) to improve operations C) to expand a product's life cycle D) to attract and retain global talent E) all of the above
E) all of the above
Cost cutting in international operations can take place because of: A) lower taxes and tariffs. B) lower wage scales. C) lower indirect costs. D) less stringent regulations. E) all of the above.
E) all of the above.
Multinational organizations can shop from country to country and cut costs through: A) lower wage scales. B) lower indirect costs. C) less stringent regulations. D) lower taxes and tariffs. E) all of the above.
E) all of the above.
The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: A) mass production. B) time-based competition. C) competing on productivity. D) competing on quality. E) competing on differentiation.
E) competing on differentiation.
Experience differentiation is an extension of product differentiation, accomplished by using people's five senses to create an experience rather than simply providing a service.
Answer: TRUE
NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States.
Answer: TRUE
One reason for global operations is to gain improvements in the supply chain.
Answer: TRUE
One reason to globalize is to learn to improve operations.
Answer: TRUE
Production processes are being dispersed to take advantage of national differences in labor costs.
Answer: TRUE
The World Trade Organization has helped to significantly reduce tariffs around the world.
Answer: TRUE
The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.
Answer: TRUE
To attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize.
Answer: TRUE
The 10 decision of OM: A) are functional areas of the firm B) apply to both service and manufacturing organizations C) are the goals that are to be achieved D) form an action plan to achieve a mission E) are key success factors
B) apply to both service and manufacturing organizations
Experience differentiation: A) isolates the consumer from the delivery of a service. B) is an extension of product differentiation in the service sector. C) uses only the consumer's senses of vision and sound. D) keeps consumers from becoming active participants in the service. E) attempts to make the service experience different for every single customer.
B) is an extension of product differentiation in the service sector.
With reference to cultural and ethical issues, the World Trade Organization has: A) eliminated bribery. B) made progress in providing equal protection of intellectual property among nations. C) phased out all trade and tariff barriers between the United States and Mexico. D) eliminated slave labor and child labor. E) played little role in addressing cultural and ethical issues among nations.
B) made progress in providing equal protection of intellectual property among nations.
A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT: A) customization of the product. B) setting equipment utilization goals below the industry average. C) speed of delivery. D) constant innovation of new products. E) maintaining a variety of product options.
B) setting equipment utilization goals below the industry average.
Franz Colruyt has achieved low-cost leadership through: A) effective use of voice mail. B) plastic, not paper, shopping bags. C) background music that subtly encourages shoppers to buy more. D) converting factories, garages, and theaters into retail outlets. E) exclusive use of the Euro.
D) converting factories, garages, and theaters into retail outlets.
Boeing's new 787 Dreamliner: A) is assembled in Washington, D.C. B) uses engines from Japan. C) has its fuselage sections built in Australia. D) has increased efficiency from new engine technology. E) results from a partnership of about a dozen companies.
D) has increased efficiency from new engine technology.
The purpose of NAFTA is to: A) substitute cheap labor in Mexico for expensive labor in the United States. B) curb illegal immigration from Mexico to the United States. C) phase out all trade and tariff barriers between North America and South America. D) phase out all trade and tariff barriers between the United States, Canada, and Mexico. E) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico.
D) phase out all trade and tariff barriers between the United States, Canada, and Mexico.
10 OM Strategies:
Differentiation: -Innovative Design -Broad Product Line -After-Sales Service -Experience Cost Leadership: -Low Overhead -Effective Capacity Use -Inventory Management Response: -Flexibility -Reliability -Quickness
The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is: A) sensory response. B) time-based competition. C) differentiation. D) flexible response. E) experience differentiation.
E) experience differentiation.
